Major Trends in the Future Middle East Economy

The sector also faced more comprehensive macro headwinds, consisting of a more careful policy background in China and international risk-off sentiment driven by geopolitical tensions and higher energy rates. Thematic ETFs Had a hard time for the most part, particularly those linked to carbon and high-growth innovation, as appraisal pressures and worldwide rate characteristics weighed on efficiency.

Flows in Q1 2026 were modest and highly concentrated, showing selective allotment rather than broad market participation. Regardless of weak performance, ETFs tape-recorded $27.1 million in net inflows, with just a little number of items attracting new capital.

Trading activity stayed stable, with typical 30-day volumes around 33,000 shares, concentrated in a handful of larger and more liquid ETFs. A lot of activity appears to have actually taken place in the secondary market, making it possible for financiers to change positions without significant main creations or redemptions. While recent geopolitical occasions have actually resulted in more monetary pressure on GCC countries, the area stays durable and well capitalized to deal with the situation.

In January, Boreas released its S&P Global Luxury UCITS ETF, including a specific niche thematic direct exposure concentrated on global luxury and consumer brand names. Momentum continued into April with the approval of KraneShares AGIX and KWIN ETFs by the CMA for cross-listing on ADX. These funds are expected to introduce in April pending a final approval from ADX.

Q1 2026 revealed some progress connecting to ETFs in the GCC. We anticipate more global and thematic ETFs to list in the GCC throughout 2026. While the conflict has impacted sentiment and rates throughout the quarter, it has actually driven more volume and interest in regional properties.

Strategic Strategy for Regional Success

Despite ongoing geopolitical tensions and security dangers throughout the Middle East, the economies of the Gulf Cooperation Council (GCC) have actually continued to demonstrate durability, preserving positive development momentum recently. While disputes in the broader area and global financial uncertainty stay a structural constraint, GCC nations have actually up until now limited their effect on domestic financial efficiency through strong financial positions, policy connection, and sustained investment.

3.2 percent growth in 2025, speeding up to 4.5 percent in 2026. Sees momentum improving, with GCC output development forecasted to rise from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift toward more favorable overall conditions.

The IMF's World Economic Outlook (October 2025) jobs global growth relieving to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies just above 4 percent. On that comparison, a 4.44.5 percent GCC growth would place the region materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, strengthening the GCC's status as a relatively high-growth pocketprovided that regional danger conditions remain consisted of and reform momentum holds.

Ways to Leverage GCC Intelligence for 2026 Growth

Information from the GCC Statistical Center reveal that non-oil sectors already account for more than 73 percent of total GDP, a share that has continued to increase as federal governments broaden financial investment in services, infrastructure, and technology. According to Oxford Economics, non-energy activity throughout the GCC is predicted to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and rising investment in innovation and AI-related infrastructure.

Public-sector financial investment and reform remain central to sustaining this pattern. Policy steps aimed at drawing in foreign direct financial investment, alleviating foreign ownership guidelines, broadening capital markets, and supporting private-sector participation continue to underpin non-oil expansion and reduce the area's direct exposure to oil rate volatility. While hydrocarbons no longer control the growth outlook, oil earnings are anticipated to play a helpful role in 2026.

3.2 percent growth in 2025, accelerating to 4.5 percent in 2026. Sees momentum improving, with GCC output development forecasted to increase from 1.7 percent in 2024 to 3.3 percent on average in 2025, showing a shift towards more positive overall conditions.

The IMF's World Economic Outlook (October 2025) projects global growth reducing to 3.1 percent in 2026, with advanced economies around 1.5 percent and emerging market and establishing economies simply above 4 percent. On that comparison, a 4.44.5 percent GCC growth would position the area materially ahead of the world average and a little above (or broadly in line with) the emerging-market aggregate, reinforcing the GCC's status as a relatively high-growth pocketprovided that regional danger conditions stay contained and reform momentum holds.

ANSR July GCC PRs 50DR+

Corporate Planning for GCC Leadership

Information from the GCC Statistical Center reveal that non-oil sectors currently account for more than 73 percent of total GDP, a share that has actually continued to increase as governments broaden investment in services, infrastructure, and innovation. According to Oxford Economics, non-energy activity throughout the GCC is projected to grow by around 4.1 percent in 2026, supported by strong labor markets, improving credit conditions, and increasing financial investment in technology and AI-related infrastructure.

Public-sector investment and reform remain central to sustaining this pattern. Policy steps focused on bring in foreign direct financial investment, easing foreign ownership guidelines, expanding capital markets, and supporting private-sector participation continue to underpin non-oil growth and minimize the region's direct exposure to oil cost volatility. While hydrocarbons no longer dominate the growth outlook, oil revenues are anticipated to play a helpful role in 2026.